After Orora’s FY21 trading update, Morgan Stanley determines the business is tracking in line with its expectations. The announcement of a $150m on-market buyback is also considered a positive.
Due to chinese wine tarrifs, first half Australasia earnings (EBIT) are expected to decline though should return to growth in the second half, assures the analyst. North American earnings areexpected to grow in FY22.
Target price steady at $3.50. Equal-weight rating retained. Industry view: In-Line.
Target price is $3.50.Current Price is $3.26. Difference: $0.24 – (brackets indicate current price is over target). If ORA meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).